BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 586
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          ASSEMBLY THIRD READING
          AB 586 (Huber)
          As Amended  May 7, 2009
          Majority vote 

           INSURANCE           7-2         APPROPRIATIONS      12-5        
           
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          |Ayes:|Coto, Charles Calderon,   |Ayes:|De Leon, Ammiano, Charles   |
          |     |Carter, Feuer, Hayashi,   |     |Calderon, Davis, Fuentes,   |
          |     |Hill, Torres              |     |Hall, John A. Perez, Price, |
          |     |                          |     |Skinner, Solorio,           |
          |     |                          |     |Torlakson, Krekorian        |
          |     |                          |     |                            |
          |-----+--------------------------+-----+----------------------------|
          |Nays:|Blakeslee, Niello         |Nays:|Nielsen, Duvall, Harkey,    |
          |     |                          |     |Miller,                     |
          |     |                          |     |Audra Strickland            |
          |     |                          |     |                            |
           ------------------------------------------------------------------- 
           SUMMARY  :  Provides that any peace officer defined in specified  
          Penal Code provisions shall be entitled to the presumptions that  
          certain conditions or illnesses are job related, including  
          adding officers employed by the University of California (UC)  
          and the California State University System (CSU) to the peace  
          officers entitled to this benefit.  Specifically,  this bill  :  

          1)Provides that existing presumptions that certain conditions  
            arose during the course employment that are applicable to most  
            fire and peace officer employees of the state and local  
            government apply to any peace officer defined by Penal Code  
            Sections 830.1 through 830.38.  Peace officers who are  
            employees of the UC and CSU systems would benefit from this  
            provision.

          2)Provides that the existing presumptions that would be extended  
            to these peace officers involve cancer, hernia, pneumonia,  
            heart trouble, tuberculosis, blood-borne infectious diseases,  
            meningitis, and methicillin-resistant Staphylococus aureus  
            skin infection (MRSA).

          3)Subjects these new recipients of the benefit of the  
            presumptions to the same conditions as existing presumption  
            recipients.








                                                                  AB 586
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           EXISTING LAW:  

          1)Provides that most firefighters and peace officers employed in  
            state and local governments are afforded the benefits of the  
            presumptions discussed above, subject to the same conditions  
            and periods of time discussed below.

          2)Provides that each of these presumptions may be rebutted by  
            the employer.

          3)Provides that each of these presumptions, except MRSA,  
            continues to apply after the employee leaves employment for a  
            period of three months for every year of service, but in no  
            event more than five years after separation.

          4)Provides that the MRSA presumption applies for a period of 90  
            days after separation.

           FISCAL EFFECT  :  According to the Assembly Appropriations  
          Committee:
          1)Cumulative costs of millions of General Fund (GF) dollars,  
            combined, to several dozen CSU, UC, and UC medical center  
            campuses to the extent this bill increases future workers'  
            compensation costs for the payment of full hospital, surgical,  
            medical treatment, disability indemnity, and death benefits  
            for numerous presumptions regarding cardiovascular, cancer,  
            and blood-borne disease.  Annual costs will depend on the  
            health status of professions gaining access to these  
            presumptions.  Annual GF costs may be in the range of $100,000  
            to $200,000.

          2)Most public agencies are self-insured for workers'  
            compensation claims, rather than paid through premiums.   
            Payments are treated in a pay as you go manner.  Therefore,  
            any increase in costs has a direct impact on public funds.

           COMMENTS  :   

          1)According to the author, the UC and CSU peace officers perform  
            the same law enforcement functions as the peace officers who  
            already receive the benefit of these presumptions.  They face  
            the same hazards, including work in hospitals and scientific  
            research laboratories that present risks similar to other  








                                                                  AB 586
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            police agencies.  

          2)The sponsor, Police Officers Research Association of  
            California (PORAC), notes that the Penal Code classifies peace  
            officers into several groups in the Section 830.1 through  
            830.38 series.  The current law grants peace officers the  
            benefit of the presumptions of compensability based upon who  
            employs them.  A problem arises when a new agency employs a  
            peace officer, or a new authority is granted by the Penal Code  
            for officers to be granted peace officer status based on  
            existing classes of officer - the new peace officer categories  
            are not automatically included in the presumption statute.   
            This bill is designed to ensure that UC and CSU officers  
            obtain the same benefits as similar peace officers, but also  
            to structure the Labor Code so that it is the type of officer  
            and not the name of the employer that determines whether the  
            presumption applies.


           Analysis Prepared by  :    Mark Rakich / INS. / (916) 319-2086


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